> But then another customer still wants gamma@1, they are allowed to do that! But they also want your new features.
In this case, you still have the option of working with them to help them migrate to gamma@2, if the cost of maintaining gamma@1 is indeed too high and would negatively impact you in serving other customers. This was the original premise, wasn't it - upgrading all your dependants when you upgrade your library? That's still an option. The point is - you have more choices. And you can also help customers one by one - you don't have to do it all at once
I will agree though, restricting choices helps when the company is finding difficulty in aligning incentives through communication. But you do give up a lot for it - including ability to move fast and avoid stagnation.